ITC Limited's intrinsic value using Intellectual Capital analysis

ITC Limited

BSE : 500875

|

NSE : ITC

Industry : Cigarettes

|

ISIN : INE154A01025

|

FreeFloat : 70.00%

|

FnO : Yes

|

LotSize : 3200

BSE SENSEX | BSE SENSEX 50 | Nifty 50 | Nifty50 Equal Weight | BSE 100 | BSE 100 Largecap TMC | BSE 200 | BSE 250 LargeMidcap | BSE Largecap | BSE LargeMidcap | Nifty 100 | Nifty 200 | Nifty LargeMidcap 250 | Nifty100 Equal Weight | Nifty Alpha Quality Low Volatility 30 | Nifty Alpha Quality Value Low Voltlty 30 | Nifty Quality Low Volatility 30 | Nifty FMCG | BSE Low Volatility | BSE Quality | Nifty Dividend Opp 50 | Nifty Growth Sectors 15 | Nifty Low Volatility 50 | Nifty100 Low Volatility 30 | Nifty100 Quality 30 | Nifty200 Quality 30 | Nifty50 Value 20 | Nifty500 Value 50 | BSE CARBONEX | BSE Bharat 22 | BSE India Manufacturing | Nifty India Consumption | Nifty Non-Cyclical Consumer

Intellectual Capital (IC)	142,582.50
Net Worth (NW)	62,821.87
Intrinsic Worth (IW)	205,404.40
Market Cap (MC)	308,882.40
Economic Value Added	2,102.76

Discount Rate	%
Liquidity Premium	%

Knowledge Basis (IC/IW)	69.42%
IC Gross Margin (EBITDA/IC)	16.32%
IC Net Margin (NPT/IC)	10.43%
Knowledge Turnover (Sales/IC)	0.48
Market to Intrinsic Value (MC/IW)	1.50

As Of	Intrinsic Value	Market Price
31 Mar 2022	Rs. 166.68	Rs. 250.65
26 May 2022	----	Rs. 266.70
26 May 2022	----	-6.00 -2.25%

Fundamental - medium term		Technical - near term		Combined outlook
EVA > 0 : Yes	Buy	10 DMA : Rs. 268.46	Sell	Avoid
KB > 50% : Yes		50 DMA : Rs. 259.14
0 < M2IV < 1 : No		Vol-Price trend : Falling

Question 3 - Is this stock undervalued?

Question 2 - Does this business have significant knowledge assets?

Question 1 - Is this business generating enough profits to cover its cost of capital?

* EVA is a registered trademark of Stern Stewart and Co.

Quarterly Results (Rs. Cr)

Quarter

Type*

Sales

Income

EBITDA

EBIT

PBT

PAT

NPT

Jun-19
C
12657.90
13305.19
4937.75
4558.81
5191.52
3436.51
3355.01

Sep-19
C
12867.39
13497.27
4842.06
4426.22
5042.11
4173.72
4119.16

Dec-19
C
13307.54
13960.50
4976.73
4539.83
5049.25
4047.87
3975.54

Mar-20
C
12560.64
13228.40
5171.38
4758.15
4743.47
3926.72
3119.91

Jun-20
C
10478.46
11403.59
3870.69
3451.70
3435.88
2562.73
2576.16

Sep-20
C
13147.81
13730.06
4983.25
4578.65
4565.38
3413.44
3412.46

Dec-20
C
14124.48
14670.17
5330.71
4917.22
4904.61
3587.09
3582.87

Mar-21
C
15404.37
15983.86
5450.61
5042.10
5039.22
3819.62
3742.35

Jun-21
C
14240.76
14687.80
4890.78
4476.65
4467.31
3344.15
3359.28

Sep-21
C
14844.38
15313.15
5486.37
5064.64
5054.89
3766.38
3757.51

Dec-21
C
18365.80
18787.72
6019.59
5590.00
5580.44
4126.73
4136.30

Mar-22
C
17754.02
18252.64
6104.21
5637.25
5626.54
4265.87
3679.70

* C - Consolidated, S - Standalone